Chunghwa Telecom Co (中華電信), the nation’s biggest telecoms operator, yesterday said consolidated net income shrank 17.4 percent in the first half from a year ago as higher expenses, and falling voice rates offset growth in mobile data services higher expense.
Net income fell to NT$20.76 billion in the first half (US$693 million), compared with NT$25.13 billion a year earlier, while non-operation loss increased NT$1.3 billion from the year before, Chunghwa Telecom said in a statement.
Chairman Lu Shyue-ching (呂學錦) said the first-half results were in line with the company’s earlier guidance, despite regulatory pressure and intense market competition.
The company yesterday cut its target for Internet TV subscriptions to 1.3 million units for this year, down 13 percent from 1.5 million users estimated early this year as demand fell short of the company’s expectations, Lu told investors.
Lu blamed the slower-than-expected approval for its second Internet platform from the National Communications Commission for the forecast reduction. Chunghwa Telecom had 1.16 million Internet TV subscribers as of June 30, the statement showed.
Lu said the company also reduced its target for broadband subscribers for this year to 4.75 million from 5 million, but would stick to its earlier forecast for this year.